Chapter 180: Progress on the Four Stocks
"Boss, although establishing an intelligence department is very similar to how we gather news information, in practice, the information we currently acquire is still quite limited. To achieve the results you expect, we would need to invest a significant amount of money. For instance, back when the Ma family was involved in gray industries, we had various channels for intelligence gathering, including Chinese detectives, chief inspectors, and even some key officials from the Governor's House. Maintaining these connections required substantial monthly payments. After the Ng Sik-ho incident, Mr. Ma ordered us to sever ties with most of these contacts. Therefore, while we still receive news faster than the average person, we are currently blind to matters others wish to conceal. However, rebuilding these networks would not be difficult — it would just cost tens of thousands or even hundreds of thousands of Hong Kong dollars each month. Additionally, we would need to activate dormant contacts within major British and Chinese enterprises to obtain critical business intelligence for you, Boss. Based on preliminary estimates, it would require at least HK$1 million per month to meet your expectations," Cui Zilong explained.
During the fallout from the Ng Sik-ho case, the Ma family had managed to escape prosecution largely thanks to their intelligence network, which had been quietly built through Oriental Press. Even though that network was now greatly diminished, the foundation remained. Restoring it to operational strength would only require money.
"Very well. In that case, I'll put you in charge of it. But you must remember: handle everything discreetly. I don't want any unnecessary trouble," Lin Haoran instructed. Spending an extra HK$1 million a month was nothing to him as long as it yielded results.
"Please don't worry, Boss. I have experience from when we originally built the network under the Ma family. Rebuilding it now won't be difficult. Since you want an intelligence department, I will make sure it's the best," Cui Zilong promised.
After spending a long time talking with Cui Zilong at Oriental Press' Changye Building headquarters, gaining a deeper understanding of the company, Lin Haoran finally left.
For now, Oriental Press wouldn't change much. Business would proceed as usual — only the owner had changed, with no shifts in personnel.
Thus, Lin Haoran's acquisition didn't disrupt the company, except for bolstering its intelligence capabilities.
Time passed quickly, and soon it was February 11th.
It was a Monday — a stock market trading day.
Lin Haoran's top priority remained Land Holdings.
With Hongkong Electric holding 6.4% of Land Holdings, his foundation was strong.
If he couldn't take control now, he would have wasted this golden opportunity.
Securing those shares had indeed been a lucky stroke — and it was Land Holdings that had come seeking cooperation first.
At Wan'an Group's headquarters in Causeway Bay, inside Huanyu Investment Company's office, Lin Haoran arrived just after lunch.
The new Wan'an Building, formerly the Federal Building, was still under renovation, so Wan'an Group and Huanyu Investment continued working out of their old offices.
Moving would have to wait until the end of the month.
By the time Lin Haoran arrived, the afternoon trading session had already resumed.
Inside the office, multiple small teams were busy, each assigned to specific tasks, working independently to prevent leaks.
Everyone had signed strict confidentiality agreements. In this industry, professionalism was paramount. Loose talk could end careers and result in massive fines — or even jail time.
Thus, unless offered astronomical bribes, these professionals generally adhered to their obligations.
Lin Haoran noticed that Huanyu Investment's staff had grown to over thirty people — far more than before.
More than half were familiar faces: old trading members, and employees from Wan'an Group's former securities department.
There were also several newcomers — obviously recent hires brought in by Su Zhixue.
Now, as General Manager, Su Zhixue only needed to oversee the big picture. He no longer personally handled trades.
Entering Su Zhixue's office, Lin Haoran found him studying the historical order book and trading volumes for several stocks.
Although he didn't need to trade personally anymore, Su Zhixue had to remain deeply familiar with each stock to assign tasks effectively and fulfill Lin Haoran's strategic objectives.
"Boss, you're here," Su Zhixue said, immediately putting down his work and greeting Lin Haoran upon seeing him. Lin Haoran nodded, closed the office door behind him, and smiled, asking, "How's the progress?"
It had already been several days since the beginning of the stock acquisitions targeting the four companies.
"Boss, this is the summary of the acquisitions up to today's midday break," Su Zhixue said respectfully, handing Lin Haoran a notebook.
Lin Haoran took the notebook and sat down to review it carefully.
The targets were Land Holdings, Jardine Matheson, The Hong Kong and China Gas Company (commonly known as Towngas), and Kowloon Motor Bus Company (KMB).
Every page of the notebook meticulously detailed the progress: total number of shares acquired, percentage holdings, total capital spent, and average purchase price per share.
Land Holdings: Currently holds approximately 3.42% of shares, with HK$267.2 million spent.Jardine Matheson: Currently holds approximately 1.82% of shares, with HK$78.15 million spent.Towngas: Currently holds approximately 2.41% of shares, with HK$14.13 million spent.Kowloon Motor Bus: Currently holds approximately 2.59% of shares, with HK$13.54 million spent.
Seeing these figures, Lin Haoran was a bit surprised.
He hadn't expected Huanyu Investment's progress to be so fast in just a few days.
Especially with Land Holdings — holding about 3.42% already — and when adding Hongkong Electric's 6.4%, Lin Haoran now effectively controlled almost 10% of Land Holdings' shares.
The other targets' progress also satisfied him.
Each stock's daily trading activity was logged in the notebook, making it easy for Lin Haoran to grasp the overall picture.
"Why was today's trading so active? Is there a risk of being noticed?" Lin Haoran asked.
"Don't worry, Boss. Today the overall market saw a broad rally. Trading volume was very high — the morning alone saw more activity than the entire day last Friday. We took advantage of the huge volume to absorb shares discreetly. Under such cover, there's no risk of exposure," Su Zhixue explained.
Lin Haoran nodded. If the market stayed active like this, although stock prices would rise, the speed of accumulation could also increase significantly.
In just a few days, they had already spent about HK$373 million, and the rapid expenditure was worthwhile — each dollar spent translated into greater control.
Of the four target stocks, Lin Haoran was determined to fully acquire three: Land Holdings, Towngas, and Kowloon Motor Bus.
As for Jardine Matheson, he was more casual — acquiring shares opportunistically rather than aggressively — since his real focus was on Land Holdings.
Towngas was the sole gas supplier in Hong Kong, monopolizing the entire city's market, much like Hongkong Electric's monopoly on electricity.
Its revenues were extremely stable, and as long as it didn't overextend with reckless investments, its profitability was guaranteed year after year.
Owning Towngas shares meant steady annual income.
Kowloon Motor Bus, meanwhile, was Hong Kong's largest bus company, with extensive land holdings scattered across Kowloon Peninsula.
Although Hong Kong Island also had a major bus company — China Motor Bus — it was much smaller in scale compared to Kowloon Motor Bus.
This was because Kowloon had a larger population and far more ordinary working-class passengers.
Thus, acquiring Kowloon Motor Bus shares was a smart move.
Both Towngas and Kowloon Motor Bus would become acquisition targets for other financial groups later this year.
For example, Kowloon Motor Bus would eventually attract the interest of Sun Hung Kai Properties.
Towngas would be eyed by Jardine Matheson but ultimately be acquired by Henderson Land.
Competition would intensify.
In Hong Kong's business world, the trend was clear — Chinese conglomerates were rapidly expanding by acquiring British-owned enterprises.
Many wanted to grow their corporate empires by absorbing companies with valuable assets or stable, monopolistic revenue streams.
Fortunately, it was still early in the year.
Lin Haoran had ample time to lay his groundwork.
By the time others realized and started acting, he might already have secured controlling stakes.
That was the advantage of early positioning.
Lin Haoran spent the whole afternoon at Huanyu Investment, staying until the stock market closed.
In the afternoon, trading activity slowed down compared to the morning, and acquisition speed decreased — but that was normal.
The market's volatility was always influenced by rumors, news, and sentiment shifts.
After leaving Wan'an Group's building, Lin Haoran headed straight for Hongkong Electric Holdings.
At the Hongkong Electric headquarters, General Manager Chen Shoulin was reviewing documents.
Seeing Lin Haoran walk in, he immediately set aside his work.
"Boss, I was just about to call you. I have something important to report," Chen Shoulin said with a smile.
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